6 - 67

6.6.4 Summary of Problems Identified

Following problems are identified through site visiting and interview with community people in sample AMDs with respect to facilities and O&M:

• Inventory of community water supply system, which would be basic information for

O&M is not properly organized or kept in record systematically.

• Condition of existing facilities and situation of O&M are different from site to site. In

well-managed AMDs, minor technical problems are smoothly recovered by revenue of

water charge or occasional contribution by users. On the contrary, in poorly-managed

AMDs, there were many cases that troubled or damaged facilities were unsolved and not

repaired. It is necessary to exchange information and know-how among WUO leaders to

learn lessons from case studies in other AMDs.

• Water quality does not seem to be checked at regular intervals as long as the Study Team

interviewed at the site.

• It is important to select appropriate pump, pipe materials and pipe diameter according to

its specific condition in planning and design stage. However, uniformly-designed

facilities are introduced in many AMDs, without consideration of specific conditions such

as geographical features, demand, etc. For example,:

− Intake pump without water level switch is burnt down by idle operation when

water level drops down.

− Where pump head is not enough, booster pump without water level switch is

additionally installed in midway of transmission lines. It causes damage in

pump by idle operation when water level drops down.

− In some AMDs, PVC pipes are exposed above ground. PVC pipes are easily

deteriorated under exposure of ultraviolet ray and it would be a cause of leakage

or pipe damage.

− Earth covering of GIP/PVC is not always sufficient to stand against vehicle load,

where pipe is crossing roadway.

• Further, through the review of existing manuals of O&M for water supply systems

provided by counterpart, following aspects are confirmed:

− There is a sort of a set of standard manuals for operation and maintenance of

water supply system prepared by the central government.

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− This set of manuals is intended to cover general aspects of operation and

maintenance of water supply systems, including facilities of PDAM (not limited

to community water supply systems).

− This set of manuals is to be recommended to revise and to edit according to the

local condition of each community.

− Contents of manuals would be interpreted as they are rather too advanced and

too technical for villagers who are responsible for daily operation and

maintenance.

6.7 UFW Survey

In this section, the terms of NRW and UFW are defined as follows: • NRW consists of UFW, meter error and unbilled authorized consumption.

• UFW is lost water volume through leakages or consumption by illegal connections.

• Unbilled authorized consumption such as water for fire fighting or use in public park can

be negligible in these survey areas because the series of UFW survey were conducted

within limited areas.

6.7.1 Outline of the UFW Survey

(1) General A series of UFW surveys have been conducted at the 7 selected areas in the Study Area as shown in Table 6.7.1 and its location is shown in Figure 6.7.1. These areas were selected through discussion among officials concerned in the Study Area. The main objectives of this survey are: • To comprehend actual situation of UFW in the Study Area.

• To pursue technology transfer on UFW survey and data analysis through on-the-job

training for PDAM staff concerned.

This UFW survey was categorized into following 2 types, according to actual site condition. • Isolated Survey:

In case there are not too many inlet pipes or customers in the survey area, survey area was

hydraulically isolated to measure system input volume or consumption in the survey area.

6 - 69

• Non-Isolated survey:

In case it is not feasible to complete hydraulic isolation work within limited time frame

but considered to be important area in terms of comprehension of actual situation of UFW,

the survey was focused on detection of leakage, its type, number (frequency per km) and

OJT (on-the-job training) for leakage detection work in such area.

Table 6.7.1 General Feature of Selected Areas for UFW Survey

Responsible PDAM Site From ToWirokarten 188 2,120 PVC Isolated Residential 5 December, 2006 20 December, 2006Malioboro 773 5,450 PVC, AC, GI Non-Isolated Commercial

Banteng*) 352 2,760 PVC, AC Isolated Residential

Pakem 216 8,100 PVC Isolated Residential,Agricultural

Perum GTA 437 5,090 PVC Non-Isolated ResidentialPlam Sewu 154 1,840 PVC, AC Isolated Residential

Imogiri 195 10,420 PVC, AC Non-Isolated Agricultural

2,315 35,780Total

Major LandUse

Selected Area for UFW Survey Period of SurveyType ofSurveyMethod

Number ofCustomers

Length ofDistributionPipes (km)

Major PipeMaterial

Yogyakarta

29 May, 2007 26 July, 2007Sleman

Bantul

Note: − Banteng is located in Sleman Regency but serviced by PDAM Yogyakarta − Wirokartan is located in Bantul Regency but serviced by PDAM Yogyakarta

7 locations in the Study Area (4 isolated survey areas and 3 non-isolated survey ares) were selected for UFW survey based on the discussion with counterpart staff.

6 - 70

B 91B92

A125

A126

A 127

A 124

A123

B137 B 152

B 138 B153

B 139 B154

B 140 B155 B255

B 252

B253

B254

A261

A262

B 246

B245

B244

B243

B 247B 256

B248B257

B249

A258B250

B251

A260

A264

B265

B266

B267

B268

B269

A270

B274

B 275

B276

B277

B278

A 281

A 282

A 283

A 284

A285

A272

B273

A280

B242

B241

B240 B

239

A287

B288

B238 B

237 B236

B 235 B234

B233

B 232

B231

MASJID31318

B 230

B 229A301A 300

A

299A 298

B289

B 290

B 291

B228B 297

B

296A 295

A 294

B 292

B293B286A279A271 B227

B226B225

C224

B218B 213

A 207B 208

C206

C 205

B204

B203B

202

B201

B200

B199

B198B 197A 156A141

A128

C223

C222

C221

C220

C219

A217

B216

B215

B 214

B 212

B 211

B 210

B

209

B 185

A196B195

B 194

B193

B 192

C 184

C183

C 182

C181

C180

C179

C178

C1７７

C176

B 191

B 190

B 189

B 188

B187B 186

C 175

C 174

C173

C172

C171

C170

C169

B142 B157

B143 B 158

B144 B 159

B145 B160

B146B161

B147B162

B 148 B163

B149B164

B150 B 165 C168

C 167B 166B151

A122

B121 B129

B130B 120

B 131B 119

B118B132

B133B117

B 134B116

B135B11５

B 136A114

B 90

B89

B 88

B 87

B 86

B 85

B 84

B 83

B 82

A93A 94

A 95

A 96

A 97

A98

A99

B100

B 101

B102

B103

B104

B105

B106 B 107

B 108

B 109A

110B 111 B

112A 113

A69B 70B71B 72

B 73

A 68A 67

A 66

C 62C 63

C 64C 65

A 52A 57

A 51A 56

A 50A 55

A 49A 54

A 48

A 53

C７８C79 C80

C81

B77B76B75

B 74

C 61C 60C 59

C 58

A 15

A 14

A 20B 26

A 19

B 25

A 18

B 24

A 17

B 23

B 47B 46

B 45

C 41C 42

C 43C 44

A 32A 33

A 34

A 35

40

A 39

A 38

A 37

A 36

B 31 B 30

B 29B 28

B 27B 10

B 9B 8

B 7 B 6 B 5

B 4

B 3

B 2B 22

A 13

A 12

A 11

A 16B 21B 1

A259

A263

Flow Mter Chambar

Installed Gate Valve

31４２４

Pipe Netw

orks Map

Wirokarten

Merdikorejo

Bangunkerto

Girikerto

Purwobinangun

Hargobinangun

Umbulharjo

Kepuharjo

Glagaharjo

Pondokrejo

Lumbungrejo

MargorejoDonokerto

CandibinangunPakembinangun

Wukirsari

Argomulyo

Umbulmartani

Harjobinangun

Donoharjo

Trimulyo

Triharjo

Pandowoharjo

Mororejo

CaturharjoTambakrejo

Sumberejo

Banyurejo

Margoagung

Sendangagung

Sendangsari

Sendangrejo

Margokaton

Margodadi

Margomulyo Sumberadi

Tridadi

Tlogoadi

Sendangadi

Sariharjo

Sinduharjo

Sardonoharjo

Sukoharjo

Wedomartani

Minomartani

Selomartani

WidodomartaniBimomartani

Sindumartani

Tamanmartani

Tirtomartani

Purwomartani

Maguwoharjo

Bokoharjo

Sambirojo

MadurojoKalitirto

Gayamharjo

Wukirharjo

SumberharjoJogotirto

Srimartani

Tegaltirto

Sendangtirto

Baturetno

Condongcatur

Sinduadi

Caturtunggal

Tirtoadi

Trihanggo

Sidomoyo

Margoluwih

Sidorejo

Sendangarum

Sendangmulyo

Sumberarum

Sumberagung SidoluhurSidoagung

Sidokarto

SidomulyoSumbersari

Sumberahayu

Argosari

Argorejo

ArgomulyoBalecatur

Ambarketawang

Banyuraden

Ngestiharjo

Tamantirto

Sidoarum

Nogotirto

Kricak Karangwaru

Cokrodiningratan

BenerTerban

Klitren

Demangan

Baciro

KotabaruGowonganBumijo

Tegalrejo

Pringgokusuman

Sosromenduran Suryatmajan

TegalpanggungBausasran

Semaki Muja-mujuPurwokinanti

NgupasanNgampilanPakuncen

Wirobrajan

Notoprajan

Kadipaten

Prawirodirjan

Warungboto

Tahunan Banguntapan

Rejowinangun

Wirogunan

KeparakanPatehan

Panembahan

Patangpuluhan

Gedongkiwo

Suryodiningratan

Mantrijeron Brontokusuman

Sorosutan

Pandeyan

Prenggan

Purbayan

Jagalan

GiwanganTirtonimolo

Argodadi

Triwidadi

Bangunjiwo

Guwosari

Panggungharjo

Bangunharjo

Tamanan

Singosaren Potorono

JambidanWirokerten

PleretWonokromo

Timbulharjo

Pendowoharjo

Sendangsari Bantul

Ringinharjo

Palbapang

Wijirejo

Gilangharjo

Trirenggo

Sapdodadi

Sumberagung

Triharjo

Trimurti

Caturharjo

Sumbermulyo

Imogiri

Girirejo

Karangtalun

Sriharjo

Karangtengah

Kebonagung

Canden

Patalan

DonotirtoPanjangrejo

Tirtomulyo

Sidomulyo

Mulyodadi

Srihandono

Seloharjo

Poncosari

Gadingsari

Gadingharjo

TirtosariSrigading

Murtigading

Dlingo

Selopamioro

Mangunan

Parangtritis

Tirtohargo

SitimulyoSrimulyo

WonoleloSegoroyoso Terong

Bawuran

Trimulyo

Muntuk

JatimulyoTemuwuh

Wukirsari

Gunungketur

Wonokerto

Malioboro

Wirokarten

Plam Sewu

Imogiri

Banteng

PerumGTA

0 4 km

N

Pakem

BPT&R1

PressureRedusing

Tank

MeasurementPoint

PressureRedusing

Tank

MeasurementPoint

Measurement Point

Figure 6.7.1 Locations of Selected Areas for UFW Survey

6 - 71

(2) Special Considerations for OJT

15 staffs from PDAM Yogyakarta participated in NRW survey conducted during the period of 5 December, 2006 to 20 December, 2006 (hereinafter referred to as the “1st Survey”). 17 staffs participated in another survey conducted from 29 May, 2007 to 26 July, 2007 (hereinafter referred to as the “2nd Survey”), 7 from PDAM Yogyakarta and 5 each from PDAM Sleman and PDAM Bantul. In order to facilitate smooth implementation of survey as well as to ensure effective technology transfer, special attention was paid to staff assignment or survey scheduling so that the staffs who had already experienced the 1st Survey could give necessary orientation or direction to those who newly participated from the 2nd Survey.

6.7.2 Methodology

A series of the NRW survey was conducted in accordance with the procedure shown in Figure 6.7.2. .

Selection of Areato be Surveyed

Household Survey

Error Test forWater Meter

Leak Detection Leak Repair

Flow Measurement

Inlet volume of the survey siteMeter reading of individualhousehold

DatabaseConstruction

Data Analysis

Flow Measurement

Inlet volume of the survey siteMeter reading of individualhousehold

Figure 6.7.2 Procedure of the Survey

Upon selection of the survey areas, household survey was conducted to confirm family size (number of people in household) through door-to-door survey. In addition, field investigation was conducted to confirm exact locations for distribution pipes or valves since detailed and precise drawings for the distribution network system were not available at PDAM offices

6 - 72

concerned.

After above-mentioned preparation works, location for ultrasonic flow meter installation was determined to measure water flow into the survey site for 24 hours. Meter reading for water meters for individual house connection were conducted one by one to measure total water consumption in the survey site

6.7.3 Result of Survey

(1) Household Survey Table 6.7.2 outlines the result of household survey. According to the result, there are totally 3,186 households in the selected 7 areas. 2,315 households out of 3,186 or 73 % of total households receive water supply service by PDAM. Other households, which do not receive PDAM service, obtain water from private well in general, especially in Wirokarten or Imogiri. The number of households supplied by PDAM would potentiall be less that 73 % in fact because there are some houses which register PDAM service but does not use PDAM water.

Table 6.7.2 Result of Household Survey

Region Area Name Number

of Household

Effective Answer

Number of PDAM

Customers

Average Family

Member

PDAM Service

Population Isolated Area

Sleman Pakem 287 213 216 (75%) 4.1 885Banteng 376 118 352 (93%) 3.8 1,337Yogyakarta Wirokarten 296 80 188 (63%) 4.1 758

Bantul Plam Sewu 183 103 154 (84%) 3.8 585Sub Total 1,142 910 (79%) 3.9 3,565

Non Isolated Area Sleman Perum GTA 450 --- 437 (97%) --- ---

Yogyakarta Maliobolo 863 --- 773 (89%) --- --- Bantul Imogiri 731 707 195 (26%) 3.9 760

Sub Total 2,044 1,405 (69%) 3.9 3,565

Total Seven Areas 3,186 --- 2,315 (73%) 3.9 ---

(2) Meter Accuracy Test A number of water meters for individual customer dates back more than 10 years since its installation and they are still in use, without calibration, repair or replacement. In order to check accuracy of water meters, a series of meter accuracy test was conducted picking up 168 customer’s water meter randomly from selected 7 areas. An electromagnetic meter and a

6 - 73

Woltmann-type meter, whose accuracy were officially certified in Japan, were used for the meter tests. Out of totally 168 meters, test measurements were conducted for 24 consecutive hours for 28 meters and remaining 140 were tested in shorter time. In test measurement, test meter was installed immediately after the objective meter to compare the value indicated in respective water meter. Table 6.7.3 summarizes the outline of the result of the accuracy test. According to the test result, more than 40 % of tested water meter have over 10 % of measurement error.

Table 6.7.3 Meter Accuracy Test 24hrs measure Limited time measure Total Indicated Value (value of

test meter set as 100%) Samples % Samples % Samples % ～49.9% 5 18% 8 6% 13 8%

50%～89.9% 1 4% 11 8% 12 7%

90%～109.9% 10 36% 87 62% 97 58%

110%～149.9% 7 25% 10 7% 17 10%

150%～ 1 4% 19 14% 20 12%Reversed Fitting 1 4% 1 1% 2 1%Outlier 3 11% 4 3% 7 4%

Total 28 100% 140 100% 168 100%*”Reversed fitting” was shown negatively value

*”Outlier” was more over the 1000% value

(3) Measurement of System Input Volume In order to know the volume of water flowing into the selected survey area, a series of flow measurement were conducted in the 4 isolated survey areas. The measurement were conducted at before and after leak repair to know baseline condition of UFW and effect of leak repair work. An ultrasonic flow meter was used for this measurement. The results of the measurement are summarized in Table 6.7.4 and Figure 6.7.3.

Table 6.7.4 Flow Measurement Result

Area Study Area Name Inlet Volume

(m3 /day) Average Flow

(ltr/sec) Minimum Flow

(ltr/sec) before 834.86 9.62 8.69 Sleman Pakem

(SP, 4 inch) after 667.75 7.69 6.50 before 441.23 5.10 3.00 Banteng

(ACP, 4 inch) after 393.48 4.55 2.18 before 104.92 1.21 0.43

Yogya Wirokarten

(PVC, 4 inch) after 99.42 1.15 0.27 befor 165.92 1.91 0.92 Bantul Pelam Sewu

(ACP, 3 inch) after 89.59 1.03 0.37

6 - 74

.

Banteng Flow data

0

1

2

3

4

5

6

7

815:04

16:34

18:04

19:34

21:04

22:34

0:04

1:34

3:04

4:34

6:04

7:34

9:04

10:34

12:04

13:34

ltr/sec Before (6/26)After (7/19)

Pakem Flow data

0

2

4

6

8

10

12

14

15:30

16:42

17:54

19:06

20:18

21:30

22:42

23:54

1:06

2:18

3:30

4:42

5:54

7:06

8:18

9:30

10:42

11:54

13:06

14:18

15:30

ltr/sec Befor (6/18)After (7/16)

Wirokarten

0.00

0.50

1.00

1.50

2.00

2.50

10:20

12:32

14:44

16:56

19:08

21:20

23:32

1:44

3:56

6:08

8:20

time

Ltr/sec BeforeAfter

Peram Sewu Flow Data

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

13:4

5

15:2

1

16:5

7

18:3

3

20:0

9

21:4

5

23:2

1

0:57

2:33

4:09

5:45

7:21

8:57

10:3

3

12:0

9

13:4

5

ltr/sec beforeAfter

Figure 6.7.3 Variation of Flow in Isolated Areas

(4) Meter Reading for Customers A series of meter reading for individual customer were carried out to measure actual consumption in 4 isolated areas. The result of meter reading is summarized in Table 6.7.5.

Table 6.7.5 Result of Meter Reading

Surveyed Area Number

of Customers

Working Meter

Consumption (m3/day)

Per Capita Consumption (m3/capita/

day)

Supplied Population in working

meter

Estimated Consumption

(m3/day)

Sleman Pakem 216 196 (90%) 95.2 0.261 364 230.98Banteng 352 269 (76%) 308.1 0.278 1,108 371.68

Yogyakarta Wirokarten 188 142 (75%) 68.5 0.113 606 78.12

Bantul Plam Sewu 154 78 (50%) 56.2 0.136 413 79.56Total 910 685 (75%) 528.0 0.212 2,491 ---

(5) Baseline Condition of NRW In general, UFW can be estimated on the basis either subtracting estimated consumption from total system input or nighttime minimum flow. In this survey, the former basis would be more appropriate to estimate UFW because of following reasons: • There should be many houses in the Study Area which have water tank so that they can

store water with keeping open their water tap in nighttime. • Therefore, nighttime minimum flow would not necessarily represent amount of UFW.

Table 6.7.6 outlines the amount of UFW in each survey area.

6 - 75

Table 6.7.6 UFW in Survey Area

a b c = a - b dm3/d m3/d m3/d m3/d

Sleman Pakem 834.86 230.98 603.88 72.3% 750.81 89.9%Yogyakarta Banteng 441.23 371.68 69.55 15.8% 259.20 58.7%Yogyakarta Wirokarten 104.92 87.12 17.80 17.0% 37.15 35.4%Bantul Pelam Sewu 165.92 79.56 86.36 52.0% 79.48 47.9%

1,546.93 769.34 777.59 50.3% 1,126.64 72.8%

System ImputVolume

EstimatedConsumption

Target Area for NRW Survey

Lost VolumeEstimated Based on Nighttime

Minimum FlowEstimated Based on Meter

Reading

c / a d / a

Total

According to the above table, average UFW in the 4 selected areas is 50.3 %. In addition, meter error was assumed to be 4.0 % based on the result of meter accuracy test. Figure 6.7.4 shows breakdown of NRW in the survey area.

Figure 6.7.4 Baseline Condition of NRW and Its Components in Survey Area

(6) Leak Detection A series of leak detection works were also conducted in the selected isolated areas. Leak detectors or stethoscopic bars were used for this detection works, with a special emphasis on technical transfer for its use through OJT as the detection work with this kind of instruments requires certain amount of skill or experiences. The detection works had to be conducted during midnight to avoid interference caused by noise, generated by traffic or residents’ daily activities including their water use in and around survey area so that the PDAM staff could identify sound of leakage among various kind of noises easily. The leak detection works were carried out, covering 2,511 of service connections and totally 35.78 km of distribution pipes. Through this detection works, illegal connections were also identified in some areas. Table 6.7.7 and Figure 6.7.5 summarizes the result of leakage detection works.

Billed Volume (45.7 %)

Meter Error (4.0 %)

Inlet Volume (100.0 %)

NRW (54.3 %)

UFW (Leakage, Illegal Connection, etc) (50.3 %)

6 - 76

Table 6.7.7 Result of Leak Detection Work Leakage Identified on Illegal Connection

Survey Area Number

of Customer

Total Length of

Distribution Pipe (m)

Distri -bution

Service Connection Total

Freauency of Leakage per km

(Number of Leaks / km)

Identified %

Pakem 216 8,100 18 22 40 4.9 1 0.4%Sleman

Perum GTA 437 5,090 --- 8 8 1.6 -- 0%Wirokarten 188 2,120 --- 10 10 4.7 1 0.5%

Banteng 352 2,760 5 17 22 8.0 1 0.3%Yogya-

karta Maliobolo 773 5,450 6 39 45 8.3 1 0.1%

Plam Sewu 154 1,840 2 10 12 6.5 1 0.6%Bantul

Imogiri 195 10,420 4 18 22 2.1 1 0.5%Total 2,315 35,7800 35 124 159 4.4 6 0.2%

Detected Leakage

14%

5%

6%

11%

25%6%

11%

11%

3% 4% 1% 3%

Service Connection Pakem

Service Connection Sleman

Service Connection Wirokarten

Service Connection Banteng

Service Connection Malioboro

Service Connection Plem Sewu

Service Connection Imogiri

Distribution Pakem

Distribution Banteng

Distribution Malioboro

Distribution Plem Sewu

Distribution ImogiriService Connection 78%

Distribution 22%

Figure 6.7.5 Breakdown of Leakage in Survey Area

Considering actual conditions, the major causes for leakage in survey area could be followings: • Sleman area:

High pressure at end part of distribution area caused by extreme difference of elevation. • Yogyakarta area･

Aged pipes and fittings. • Bantul area

Damage caused by recent earthquake disaster.

(6) Effect of Leakage Reduction In general, leak detection and repair work would have significant contribution for reduction of UFW if take a look at the past similar case studies. Table 6.7.8 and Figure 6.7.6 show the result of UFW before and after leak repair work in the selected 4 isolated areas.

6 - 77

Table 6.7.8 Effect of Leak Detection and Repair on UFW Reduction

Before After Before After Before Afterm 3 /day m 3 /day m 3 /day m 3 /day m 3 /day m 3 /day % % %

a b c d = a - c e = b - c f = d - e g= d / a h = e / b i = g - hSleman Pakem 834.86 667.75 230.98 603.88 436.77 167.11 72.3% 65.4% 6.9%Yogyakarta Banteng 441.23 393.48 371.68 69.55 21.8 47.75 15.8% 5.5% 10.3%Yogyakarta Wirokarten 104.92 99.43 87.12 17.8 12.31 5.49 17.0% 12.4% 4.6%Bantul Pelam Sewu 165.92 89.59 79.56 86.36 10.03 76.33 52.0% 11.2% 40.8%

1,546.93 1,250.25 769.34 777.59 480.91 296.68 50.3% 38.5% 11.8%

UFW (%)Inlet Volume UFWEstimatedConsumption

Survey Area

ReducedUFW

Total

ReducedUFW

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Pakem Banteng Wirokarten Pelam Sewu

Sleman Yogyakarta Yogyakarta Bantul Total

Survey Area

UFW

(%)

Before

After

Figure 6.7.6 Effect of Leak Detection and Repair on UFW Reduction

By detection and repair work for leakage, UFW in the 4 selected isolated areas could be reduced from 50.3 % to 38.5 % or approximately 300 m3/day, which is equivalent to more than 100,000 m3/year. A program of leak reduction should be focused in future master plan formulation stage.

6.7.4 Future Task Through this survey, many cases of leakage caused by damaged distribution pipes have been identified in the selected survey areas. This indicates that the major factor for or the cause of UFW would be a leakage. Therefore, water supply providers such as responsible PDAMs or concerned officials should be more aware of the importance of finding an efficient way of leak detection and repair, to save limited water resource or cost relating to water supply. In order to carry out leak detection and repair effectively and efficiently, following issues should be considered: • Setting up organization/department for UFW Reduction, especially for leak detection and

6 - 78

repair work. • Setting up special program for UFW reduction, such as:

− Formulation of step-by-step approach with a concrete numeric target. − Identify priority area for UFW reduction.

• Securing sufficient budget for UFW reduction. • Formulation of effective training program and its implementation. • Construction, arrangement and maintenance of database for existing drawing so that

officials concern can refer correct existing drawing at any time. • Creating standard method of work flow for leak detection and repair work in order to

facilitate quick and smooth operation.

However, at present, the PDAMs concerned in the Study Area do not have sufficient budget, equipment or human resources to formulate and to implement necessary countermeasures for UFW reduction. For the above reason, the PDAMs require assistance in terms of procurement of necessary equipment or training for UFW reduction program. As for the necessary equipment for UFW reduction, at least following items would be required: • Leakage investigation devices:

− Sounding sticks − Leak detector − Leak noise correlator/logger − Metal pipe locator

• Flow measurement devices: − Handheld test meters (for testing meters for individual customer) − Portable ultrasonic flow meter

6.8 Results of Water Quality Analysis

Water quality survey for water sources and drinking water was conducted in this Study in order to comprehend the outline of the quality of water supply service in the Study Area. Sampling points were selected based on the discussion with the counterpart staff so that the results could represent and reflect general trend and actual condition as much as possible. Analysis items were in accordance with the guidelines for Indonesian drinking water. As for the survey for water sources, totally 52 samples were picked up from existing major water sources (50 samples from deep wells, shallow wells and springs) and 2 samples from the Progo River (one sample each at dry condition and wet condition). As for the survey for drinking water quality, 11 samples from the outlet of water treatment plants and 49 samples from water tap for individual connections.

6.8.1 Results of Water Quality Analysis of Water Sources

6 - 79

A series of sampling activities carried out for 39 PDAMs and 11 Community Water Supply Systems from December 2006 to February 2007. In addition, for Progo River as candidate for the source of Bulk Water Supply Project, the samplings were carried out twice of December 2006 and January 2007.

(1) Existing Water Sources for PDAMs and Community Water Supply Systems The number of sampling points for existing water sources is 50. 39 of them are for the PDAMs and 11 points are for the Community Water Supply Systems. Figure 6.8.1 shows the location of sampling points for water sources of PDAM Yogyakarta. Figure 6.8.2 and 6.8.3 are for PDAM Sleman and PDAM Bantul.

The analysis results of water sources for PDAMs are shown on following Table 6.8.1 and that of Community Water Supply Systems are on Table 6.8.2. Sampling locations for community water supply systems are show in Figure 6.8.4. Summary of the results for PDAMs is as follows: • Coliform were found in every shallow well and many deep wells • In 13 water sources, values of Iron exceed the standard of drinking water • In 23 water sources, values of Manganese exceed the standard of drinking water. • In many sources, values of Colour and Turbidity exceed the standard. • Water of all sources are in alkaline state (pH is over 7.0)

Summary of the results for Community is as follows: • Coliform were found in every source except one deep well • In a water source, value of Iron exceeds the standard of drinking water • In 3 water sources, values of Manganese exceed the standard of drinking water • In all sources, values of Colour exceed the standard

6 - 80

Figure 6.8.1 Location of Sampling Points for Water Sources of PDAM Yogyakarta

6 - 81

Figure 6.8.2 Location of Sampling Points for Water Sources of PDAM Sleman

6 - 82

Figure 6.8.3 Location of Sampling Points for Water Sources of PDAM Bantul

6 - 83

Table 6.8.1 Results of Water Quality Analysis for Water Sources of PDAMs (1/3)

6 - 84

Table 6.8.1 Results of Water Quality Analysis for Water Sources of PDAMs (2/3)

6 - 85

Table 6.8.1 Results of Water Quality Analysis for Water Sources of PDAMs (3/3)

6 - 86

Figure 6.8.4 Location of Sampling Points for Water Sources of Community Water Supply Systems

6 - 87

Table 6.8.2 Results of Water Quality Analysis for Water Sources of Community Water Supply System

6 - 88

Table6.8.3 shows the number of water sources those analyzed classified by location and type.

Table 6.8.3 Number of Water Sources in Each District and Type District¥Type Deep Well Shallow Well Spring River Total

Yogyakarta 1 - 1 - 2

Sleman 19 7 5 - 31

Bantul 6 9 1 1 17

Total 26 16 7 1 50

Following tables show the relationships between water quality (especially iron and manganese) and location, type of water source.

Table 6.8.4 Number of Water Sources exceed the Standard Value of Fe (0.3mg/L） District¥Type Deep Well Shallow Well Spring River Total

Yogyakarta 0 - 0 - 0

Sleman 8 0 1 - 9

Bantul 3 1 1 0 5

Total 11 1 2 0 14

Table 6.8.5 Percentage of Water Sources exceed the Standard Value of Fe

District¥Type Deep Well Shallow Well Spring River Total

Yogyakarta 0% - 0% - 0%

Sleman 42% 0% 20% - 29%

Bantul 50% 11% 100% 0% 29%

Total 42% 6% 29% 0% 28%

Table 6.8.6 Number of Water Sources exceed the Standard Value of Mn (0.1mg/L）

District¥Type Deep Well Shallow Well Spring River Total

Yogyakarta 1 - 0 - 1

Sleman 15 1 0 - 16

Bantul 5 4 0 0 9

Total 21 5 0 0 26

Table 6.8.7 Percentage of Water Sources exceed the Standard Value of Mn

District¥Type Deep Well Shallow Well Spring River Total

Yogyakarta 100% - 0% - 50%

Sleman 79% 14% 0% - 52%

Bantul 83% 44% 0% 0% 53%

Total 81% 31% 0% 0% 52%

Summary of the results for existing water sources is as follows: • In deep wells, there are many water sources that have high values of iron (Fe) and

manganese(Mn) exceed the standard and the percentage of the wells exceed the standard of Fe and Mn in Bantul is slightly higher than Sleman.

• In shallow wells in Sleman, 14 % of wells have the high values of Mn exceed the

6 - 89

standard. • On the other hand, 44% of shallow wells in Bantul have the values of Mn exceed the

standard. • Groundwater is flowing by gravitation, so groundwater in Bantul is relatively old than it

in Sleman and the higher values of Bantul indicates the groundwater flow in the study area.

The above analysis result indicates that there are problems in terms of coliforms, iron, manganese, color and turbidity. Especially, samples for springs and shallow wells have a trend to show high value of coliforms. As springs or shallow wells are relatively vulnerable to pollution in general, following issues should be thoroughly taken into account: • Necessity of protection of well in construction/O&M. • Necessity of adequate recommendations in terms of improvement of sanitary facilities.

(2) Progo River Sampling activities were carried out under both dry and wet conditions at the possible future intake point by the future DBOT project in the Progo River. The results of water quality analysis are shown on Table 6.8.8.

Summary of the results is as follows: • Coliform were found at both time • Values of Colour exceed the standard both time • Values of Turbidity, pH and Iron exceed the standard once

The analysis result indicates that this water could be used for water source without any problem in terms of water quality as long as being accompanied by a conventional treatment method such as coagulation, flocculation, filtration and disinfection. Nevertheless, following issues should be noted and monitored to consider the Progo River as one of alternatives for future water source: • Drastic water quality change originated from volcanic activity. • Future land use change in upstream area (such as agricultural activities including usage of

pesticides or new development of industry or housing area).

6 - 90

Table 6.8.8 Results of Water Quality Analysis for Progo River No. Intake-1 Intake-2

S07'39'57'8 S07'39'57'8 IndonesiaE110'16'03'1 E110'16'03'1

26.12.06 12.01.07Item Notation Unit

Coliform CT MPN/100mL 21000 150000 0 0 -Escherichia Coli E-coli MPN/100mL 21000 150000 0 0 -Lead Pb mg/L 0.000 0.001 0.01 0.01 -Arsenic As mg/L 0.0003 0.0000 0.01 0.01 -Chromium Cr mg/L 0.000 0.000 0.05 0.05 -Selenium Se mg/L 0.0023 0.0030 0.01 0.01 -Cyanide Cn mg/L 0.013 0.010 0.07 0.07 -Cadmium Cd mg/L 0.0000 0.0000 0.003 0.003 -Mercury Hg mg/L 0.0000 0.0002 0.001 0.001Flouride F mg/L 0.080 0.050 1.5 1.5 -Nitrate NO3

- mg/L 3.2 1.0 50 50(*3) -Nitrite NO2

- mg/L 0.020 0.010 3 3 -Aluminum Al mg/L 0.83 0.07 0.2 - 0.2Sodium Na mg/L 13.2 34.1 200 - -Temperature T ℃ 26.0 29.0 - - -Electrica Conductivity EC ms/m 15.0 26.8 - - -

(mg/L) 60.06 12.94 - - -TCU 511 56 15 - 15NTU 461 2.45 5 - 5

dilution 20.0 0.0 - - -dilution 20.0 0.0 - - -

pH 8.1 9.5 6.5-8.5 - -TotalDissolved Solids TDS mg/L 87.7 134.7 1,000 - 1,000

Total Hardness (CaCO3) mg/L 39.4 80.0 500 - 0.0Calcium Ca mg/L 6.2 10.4 - - -Magnesium Mg mg/L 4.37 11.52 - - -Sulfate SO4 mg/L 98.0 74.0 250 - 250Chloride Cl mg/L 60.0 24.6 250 - 250Iron Fe mg/L 0.33 0.14 0.3 - 0.3Manganese Mn mg/L 0.021 0.000 0.1 0.4 0.1Copper Cu mg/L 0.17 0.03 1 2.0 1.0Zinc Zn mg/L 0.059 0.194 3 - 3.0Dissolved Oxigen DO mg/L 7.5 8.0 - - -Suspended Solid SS mg/L 489.0 10.0 - - -

mg/L 0.004 0.001 - - -mg/L 1.360 0.047 - - -mg/L 8.75 5.85 - - -mg/L 57.25 32.50 - - -mg/L 32.92 11.92 - - -mg/L 2.75 0.66 - - -mg/L 0.000 0.000 - - -

(*1): Guidelin Value in "WHO Guidelines for Drinking-Water Quality -DRAFT-(*2):Acceptable Value in "WHO Guidelines for Drinking-Water Quality - DRAFT- 0.33(*3):Guideline Value for short-term exposure in bottle-fed infants

DrinkingWater

GV(*1) ACV(*2)Longitude(ddd'mm'ss's

CODKMnO4 ConsumptionAmmonium(NH3+NH4)

Alkalinity (CaCO3)ColorTurbidityTasteOdour

Phenole Compound

Standard Value

Total Phosphorous

Pesticde (total)

Date of Sampling

Location of SamplingCoordinates

BOD

WHO GuidelineLatitude(ddd'mm'ss's)

6 - 91

6.8.2 Results of Water Quality Analysis of Finished Water and Tap Water The main water sources of the majority of WTP operated by PDAMs in the Study Area are deep wells. In general, typical treatment method is aeration, coagulation, sedimentation, filtration and disinfection by chlorination.

(1) Treated Water from Water Treatment Plant of PDAM The samplings were carried out from December 2006 to February 2007. The locations of 11 sampling points for treated water are indicated on Figure 6.8.5 and the results of analysis are shown on Table 6.8.9. Table 6.8.10 shows effectiveness of treatment by comparing quality of raw water and finished water Summary of the results is as follows: • Except 2 samples, Coliform were found in all • For 2 samples, Values of Iron exceed the standard slightly • For 6 samples, Values of Manganese exceed the standard • Values of Colour of all samples exceed the standard except one

The analysis result of the samples from 11 points of the PDAM’s WTP indicates the followings. • In general, iron and manganese are efficiently removed through treatment. However,

color is not removed effectively. This fact suggests that sedimentation and filtration would not demonstrate sufficient effect in a treatment process.

• Coliforms are detected from finished water. This suggests that disinfection by chlorination is not conducted or insufficient in many WTPs.

6 - 92

Figure 6.8.5 Location of Sampling Points for Treated Water from

Water Treatment Plants of PDAMs

6 - 93

Table 6.8.9 Results of Water Quality Analysis of Treated Water from Water Treatment Plants of PDAMs

6 - 94

Table 6.8.10 Water Quality Comparison between Raw Water and Finished Water

6 - 95

(2) Tap Water 40 points for PDAM tap water and 9 points for tap water of community water supply systems were selected for this analysis. In the results of the analysis, excessive color over guideline value, insufficient amount of residual chlorine and detection of coliforms were observed in many sampling points. It is necessary to be well-considered for importance of disinfection to maintain appropriated concentration of chlorine at any water tap. The locations of 49 sampling points for tap water of PDAMs and Community Water Supply systems are indicated on Figure 6.8.6 – 6.8.8 by each region. From Tap-1 to 40 are for PDAMs, Tap-41 to 49 are for Community Water Supply Systems. The results of the analysis are shown in Table 6.8.11 and Table 6.8.12

6 - 96

Figure 6.8.6 Location of Sampling Points for Tap Water in Yogyakarta Municipality

6 - 97

Figure 6.8.7 Location of Sampling Points for Tap Water of Sleman Regency

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SLEMAN

CANGKRINGAN

TEMPEL

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BERBAH

MINGGIR

PRAMBANAN

SEYEGAN

GODEAN

KAB. KLA

KOTA YOGYAKARTA

KAB. MAGELANG

KAB. SLEMAN

Hargobinangun

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Wukirsarii

Maguwoharjo

Wonokerto

Wedomartani

Sinduadi Purwomartani

Sambirejo

Kalitirto

Caturtunggal

Sukoharjo

SariharjoSelomartani

Madurejo

Triharjo

Tridadi

Donokerto

Jogotir to

Caturharjo

Argomulyo

umberarum

Kepuhharjo

Tir toadi

Sardonoharjo

Sidorejo

Sumberharjo

Trimulyo

Donoharjo

Tirtomartani

Umbulharjo

Condongcatur

Merdikorejo

Bokoharjo

Trihanggo

Margodadi

Sinduharjo

Glagahharjo

Purwobinangun

Sumberadi

Sidoluhur

Tamanmartani

Sumberagung

Tlogoadi

Margorejo

Pendowoharjo

Bangunkerto

BimomartaniBanyurejo

Umbulmartani

Sumberrahayu

SendangrejoMargokaton

Sendangadi

Margoluwih

Sendangagung

Candibinangun

ndangmulyo

Margomulyo

Sindumartani

Margoagung

Sumbersari

Ambarketawang

Widodomartani

Sidoarum

Nogotirto

HarjobinangunMororejo

Sidokarto

Banyuraden

Sidomoyo

Sendangsar i

Pakembinangun

Sidoagung

Pondokrejo

Lumbungrejo

Tambakrejo

Sidomulyo

Sumberrejo

Sendangarum

Minomartani

0 2 4 Kilometers

Tap-8 Turi

Tap-26Berbah

Tap-19Nogotirto

Tap-20Gamping

Tap-14Godean

Tap-12Mlati

Tap-9Tridadi

Tap-10 Tambakrejo

Tap-16Pakem

Tap-18Minomartani

Tap-17Ngemplak

Tap-25Kalasan

Tap-27Prambanan

Tap-24Depok

Tap-22Minomartani

Tap-15 Sleman

Tap-21Ngaglik

Tap-23Condongcatur

Tap-13Sidomoyo

Tap-11 Sayegan

Tap-42(Community)

Tap-43(Community)

Tap-44(Community)

Tap-45(Community)

6 - 98

Figure 6.8.8 Location of Sampling Points for Tap Water of Bantul Regency

KAB. BANTUL

KAB. KULONPROGO

KAB. GUNUNGKIDUL

KOTA YOGYAKARTA

KAB. SLEMAN

KAB. SLEMAN

SAMUDERA HINDIA

Bangunjiwo

Tap-28Srandakan

Tap-36Bangunjiwo

Tap-33Dlingo

Tap40Piyungan

Tap-34Banguntapan

Tap-35Sewon

Tap-37Kasihan

Tap-39Sedayu

Tap-38Guwosari

Tap-30Bantul

Tap-32Imogiri

Tap-31Trimulyo

Tap-29Bambangliuro

Tap-46(community)

Tap-47(community)

Tap-48(community)

Tap-49(community)

Tap-50(community)

6 - 99

Table 6.8.11 Results of Water Quality Analysis of Tap Water of PDAMs (1/3)

6 - 100

Table 6.8.11 Results of Water Quality Analysis of Tap Water of PDAMs (2/3)

6 - 101

Table 6.8.11 Results of Water Quality Analysis of Tap Water of PDAMs (3/3)

6 - 102

Table 6.8.12 Results of Water Quality Analysis of Tap Water of PDAMs and Community Water Supply Systems (1/2)

6 - 103

Table 6.8.12 Results of Water Quality Analysis of Tap Water of Community Water Supply Systems (2/2)

Tap-46 Tap-47 Tap-48 Tap-49CommunityTap Water

CommunityTap Water

CommunityTap Water

CommunityTap Water Indonesia

Mangunan IService Area

Dlingo,Mangunan

Terong IService Area

Dlingo,Terong

TriwidadiService Area

Jojoran

Jambon ServiceArea

Bawuran

Coordination S07'55'49'9 S07'53'17'5 S07'51'17'0' S07'52'41'5E110'25'29'7 E110'27'06'9 E110'16'59'3' E110'25'35'8

09.01.07 09.01.07 02.02.07 02.02.07Item Notation Unit

Coliform CT MPN/100mL 21 210 2400 1100 0 0 -Escherichia Coli E-coli MPN/100mL 7 210 1100 460 0 0 -Lead Pb mg/L 0.000 0.000 0.000 0.000 0.01 0.01 -Arsenic As mg/L 0.0010 0.0000 0.0000 0.0000 0.01 0.01 -Chromium Cr mg/L 0.000 0.000 0.000 0.000 0.05 0.05 -Selenium Se mg/L 0.0029 0.0036 0.0057 0.0014 0.01 0.01 -Cyanide Cn mg/L 0.012 0.013 0.001 0.001 0.07 0.07 -Cadmium Cd mg/L 0.0000 0.0000 0.0000 0.0003 0.003 0.003 -Mercury Hg mg/L 0.0000 0.0000 0.0000 0.0000 0.001 0.001 -Flouride F mg/L 0.230 0.120 0.050 0.040 1.5 1.5 -Nitrate NO3

- mg/L 1.2 1.3 1.5 1.7 50 50(*3) -Nitrite NO2

- mg/L 0.025 0.180 0.004 0.004 3 3 -mg/L _ _ _ _ 0.6-1.0 - 0.6-1.0

Aluminum Al mg/L 0.06 0.08 0.07 0.10 0.2 - 0.2Sodium Na mg/L 56.5 51.8 9.0 43.9 200 - 200Temp. T ℃ 26.0 26.0 28.0 31.0 - - -ElectricalConductivity EC ms/m 26.5 15.6 73.0 70.0 - - -

CaCO3(mg/L) 157.5 217.0 152.6 147.7 - - -TCU 55.0 63.0 58.0 61.0 15 - 15NTU 1.9 0.8 0.4 0.4 5 - 5

dilution 0.0 0.0 0.0 0.0 - - -dilution 1.3 1.0 0.0 0.0 - - -

pH 7.3 5.8 8.0 9.8 6.5-8.5 - -TotalDissolved Solids TDS mg/L 161.4 87.8 370.0 350.0 1,000 - 1,000

Total Hardness (CaCO3) mg/L 100.8 80.0 161.6 187.2 500 - 0.0Calcium Ca mg/L 10.8 11.2 37.2 39.6 - - -Magnesium Mg mg/L 4.3 10.6 3.8 8.6 - - -Sulfate SO4 mg/L 100.0 100.0 10.7 23.4 250 - 250Chloride Cl mg/L 42.7 28.6 101.8 117.0 250 - 250Iron Fe mg/L 0.04 0.06 0.14 0.05 0.3 - 0.3Manganese Mn mg/L 0.324 0.141 0.053 0.011 0.1 0.4 0.1Copper Cu mg/L 0.1 0.0 0.0 0.1 1 2.0 1.0Zinc Zn mg/L 0.2 0.5 0.2 0.1 3 - 3.0Dissolved Oxigen DO mg/L 6.1 6.2 8.2 7.9 - - -Suspended Solid SS mg/L 3.0 2.0 1.0 2.0 - - -

mg/L 0.000 0.001 0.000 0.000 - - -mg/L 0.017 0.019 0.038 0.037 - - -mg/L 7.8 4.3 8.5 9.2 - - -mg/L 0.06 0.03 0.29 0.48 - - 1.5

(*1): Guidelin Value in "WHO Guidelines for Drinking-Water Quality -DRAFT-(*2):Acceptable Value in "WHO Guidelines for Drinking-Water Quality - DRAFT-(*3):Guideline Value for short-term exposure in bottle-fed infants

0.33 : value that exeeds Indonesian Standard (Drinking water)

TasteOdour

Phenole CompoundTotal PhosphorousKMnO4 ConsumptionAmmonium (NH3+NH4)

No.

Code, Name/Location

Latitude(dd'mm'ss's)Longitude(ddd'mm'ss's)

Date of Sampling

Residual Chlorine

AlkalinityColorTurbidity

WHOGuideline

Standard Value

DrinkingWater

GV(*1)

ACV(*2)

CHAPTER 7

ADMINISTRATION

AND

MANAGEMENT OF WATER SUPPLY SYSTEM

7 - 1

CHAPTER 7 ADMINISTRATION AND MANAGEMENT OF WATER SUPPLY SYSTEM

7.1 Overview of Water Sector Administration and Performance

The roles of province, regency/municipality and PDAM are clearly separated. The DIY Province is responsible only for policy planning and implementation crossing regencies/municipality. PDAMs are responsible for planning & design, financing, construction and operation of the facilities owned by the regency’s/municipality’s governments. Regency’s/municipality’s governments provide PDAMs with subsidies if necessary and act as an regulator by way of tariff appraisal/approval, performance monitoring & evaluation, etc. The water supply and sewerage are vital services, the water and sanitation sector must be “sustainable”. “To be sustainable” means to be able to provide long-term water supply and sewerage services to the entire population, without detrimental effects to the environment, via an operation that is efficient and financially sound. The Vision for the JICA Master Plan clearly adopts sustainable service provision as its overarching goal (see Chapter 12 of this report).

Sustainability of the water supply and sanitation system should be achieved at two levels: the country sector level and operator level. For each of these two levels, internationally-accepted benchmark indicators were selected – five (5) corresponding to the sector, and ten (10) corresponding to the operator – which are considered to indicate best their sustainability. The parameters selected as sustainability indicators for evaluating the sector and the operating utilizes are listed in Tables 7.1.1 and 7.1.2, respectively.

7.1.1 Evaluation at Sector Level The results of evaluation at the sector level are summarized in Table 7.1.3. The water sector in Indonesia is well-organized. Table 7.1.4 indicate the division of roles of the four main entities (central, provincial, district and operators). The table shows a clear-cut separation between main functions (policy planning, regulation and operation) and progressive delegation of functions from the central/regional governments to the local government. No overlaps and gaps between entities are seen in major fuctions.

Table 7.1.5 indicates trends of capital investment and subsidies for each district for past three years. The table indicates: (i) the capital investment growing for Yogyakarta, steady for Sleman, and diminishing for Bantul; and (ii) no subsidy for Yogyakarta and heavy, growing

7 - 2

subsidies for Sleman and Bantul. The tariff structure is adequate for the three PDAMs as the volume-based and differential system is used for the three PDAMs. But, adequacy of tariff levels varies among the PDAMs: adequate for Yogyakarta; acceptable for Bantul; and unacceptable for Sleman.

7.1.2 Evaluation at Operator Level

The results of evaluation at the operator level are summarized in Table 7.1.6. From this table, the following problems and issues are identified. • First, availability of water sources: the municipality and Bantul need water from outside,

while Sleman is able to manage own demand from own source. • Second, low water service coverage (direct access basis) for Sleman and Bantul. The

service coverage for the municipality can be considered to be adequate, but low for sewerage service coverage. Though sewerage is not PDAM’s job, the municipal government should pay more attention to sanitation to upgrade clean image of the City as an international tourist destination.

• Third, high water losses for all PDAMs. • Fourth, overstaffing for all. • Fifth, poor financial performance particularly for Sleman and Bantul partially.

From this assessment and dialogues with persons concerned, it can be concluded that the root problem for poor performance of Sleman and Bantul is especially lack of cost recovery from tariff revenues. Low cost recovery needs subsidy from the government, and then the government intervention reduces autonomy. Reduced autonomy causes lack of motivation for running the company well. This causes overstaffing and high losses. Overstaffing and high NRW brings low investment and poor O&M. Low investment and poor O&M makes consumers unsatisfied. Therefore the core problems would result from low tariffs and lack of autonomy, and the core solutions include a transparent policy, an independent regulatory body, a paradigm shift in tariffs, and involvement of civil society.

7 - 3

Table 7.1.1 Performance Monitoring Indicators for Governments Indicator Checkpoint Qualification

good acceptable

1. Sector Organization

Clear-cut division of roles between Province and City/Regency Clear-cut separation between Policy making and operation Delegation of authorities from Province to City/Regency problematic

growing steady

2. Trend of investments

Trend of annual investments in past years （Amounts of capital and O&M investments, their shares of

public investment and GDRP） diminishing diminishing steady

3. Trend of subsidies

Trend of government subsidies in past years （Amounts of subsidies for capital and O&M investments, their

shares of the total government subsidies） growing adequate acceptable

4. Tariff structure

Tariff is measured by used volume-base (consumers pay for water in proportion to their actual use) and is differential (increasing tariffs for higher consumption) inadequate

adequate acceptable

5. Tariff level The extent to which tariff covers O&M costs and capital costs

unacceptable (Source) WB, JBIC

Table 7.1.2 Performance Monitoring Indicators for Operators (PDAMs) Indicator Definition Benchmark

A. Management Plan 1-1 Water sources Availability of stable water sources in future 1-2 Water service plan Availability of reliable water service plans B. Water supply service 2. Water service coverage Percentage of population connected to public

(PDAM) water supply services

3. Service quality Water quality, continuity of supply, water pressure, etc

C. Sewerage service 4. Sewerage service coverage Percentage of population connected to public

sewerage services

5. Sewage treatment Percentage of sewage undergoing treatment of any type

6. Water to sewerage coverage ratio

Ratio between water coverage and sewerage coverage

D. Operational performance 7. Water losses (UfW) Percentage of water not sold to water

produced 23% or less (WB)

8. Staff per water connection (SWC)

No. of staff per thousand water connections 5 or less (WB)

E. Financial performance 9-1 Working ratio (WR) Ratio of O&M costs to revenues 0.68 or less (WB) 9-2 Operating ratio (OR) Ratio of full costs (O&M costs and capital

recovery costs) to revenues

10 Collection rate (CR) Ratio of collection to billing 0.8 or more (WB) (Source) WB, JBIC

7 - 4

Table 7.1.3 Summary of Evaluation at Sector Level Indicator Checkpoint Qualification

1. Sector organization

Clear-cut division of roles between Province and City/Regency

Clear-cut separation between Policy formulation/regulation and service provision

Delegation of authorities from Province to City/Regency

Good Good Good

2. Trend of investments

Trend of annual investments in past years （Amounts of capital and O&M investments, their

shares of public investment and GDRP）

Growing for Yogyakarta Steady for Sleman Diminishing for Bantul

3. Trend of subsidies

Trend of government subsidies in past years （Amounts of subsidies for capital and O&M

investments, their shares of the total government subsidies）

No subsidy for YogyakartaHeavy, growing subsidies for Sleman and Bantul

4. Tariff structure

Tariff is measured by used volume-base (consumers pay for water in proportion to their actual use) and is differential (increasing tariffs for higher consumption)

Adequate

5. Tariff level The extent to which tariff covers O&M costs and capital costs

Adequate for Yogyakarta Acceptable for Bantul Unacceptable for Sleman

(Source) JICA Study Team

Table 7.1.4 Division of Roles of Main Entities Concerned Role Central Gov. Provincial Gov. District Gov. PDAMs

Establishing laws and regulations Policy planning Investment planning (capital) (Rural) (Urban) Investment planning (O&M) Funding for investment (capital) (Subsidy) Funding for investment (O&M) Ownership of assets Tariff proposal preparation Tariff appraisal/approval Design & Construction Operation Maintenance Management Billing & collection Customer relations Setting performance M&E standards Conducting performance M&E (Source) JICA Study Team

7 - 5

Table 7.1.5 Capital Investment for Water Supply Systems ( for PDAM and AMD)

Kota: Yogyakarta Kota Gov. Budget (Million Rp.) Capital Investment for Water Supply System (Million Rp.)

Year Total

Routine Budget

Development Budget

PDAM own fund

Regency/ Kota Fund

ProvincialGov. Fund

Central Gov.Fund

(DAK)

Central Gov. Fund

(DAU) Other Total

2004 428,693 58,352 370,341 3,500 0 0 0 0 0 3,500 2005 450,654 70,775 379,879 5,500 0 0 0 0 0 5,500 2006 571,236 65,606 505,630 5,700 0 0 0 0 0 2,500

Regency: Sleman

Regency Gov. Budget (Million Rp.) Capital Investment for Water Supply System (Million Rp.)

Year Total

Routine Budget

Development Budget

PDAMown fund

Regency/ Kota Fund

ProvincialGov. Fund

Central Gov.Fund (DAK)

Central Gov. Fund (DAU)

Other Total

2004 488,078 121,124 366,954 1,000 0 500 0 500 500 2,500 (AMD) (AMD)

2005 488,677 121,123 366,954 1,000 55 0 460 1,800 0 3,315 (AMD) (AMD)

2006 704,213 176,650 527,563 500 676 0 1,010 1,932 0 4,118 575 (PDAM) (AMD) (AMD) 101 (AMD)

Regency: Bantul

Regency Gov. Budget (Million Rp.) Capital Investment for Water Supply System (Million Rp.)

Year Total

Routine Budget

Development Budget

PDAMown fund

Regency/ Kota Fund

ProvincialGov. Fund

Central Gov.Fund (DAK)

Central Gov. Fund (DAU)

Other Total

2004 680,969 396,427 284,542 127 0 0 0 200 0 327 (AMD) (AMD)

2005 680,968 396,426 284,542 274 0 250 1,130 289 3,000 4,943 (AMD) (AMD)

2006 530,728 141,956 388,772 0 0 866 1,130 2,072 200 4,268 (AMD) (AMD)

(Source) Indetifikashi Memorandum Program dan Projek Air Minum (for each District)

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Table 7.1.6 Summary of Evaluation at Operator Level

Indicator Yogyakarta Sleman Bantul Benchmark for Big Urban Area

A. Management Plan 1-1 Water sources Needs external

sources (now and future)

Internal sources available (now

and future)

Needs external sources (now and future)

1-2 Water service plan Plan available Plan available Plan available B. Water supply service 2. Water service coverage 64% 13% 9% 3. Service quality Potable water

quality, 24-hr supply,

acceptable water pressure

Potable water quality, 24-hr

supply, acceptable water

pressure

Clean water quality,

less-than 24 hr supply,

acceptable water pressure

C. Sewerage service PU Kota is responsible

PU Regency is responsible

PU Regency is responsible

4. Sewerage service coverage 5. Sewage treatment 6. Water to sewerage coverage ratio

D. Operational performance 7. Water losses (UfW) 39% 52% 42% 23% or less (WB)8. Staff per water connection (SWC)

8.5 10.1 11.9 5 or less (WB)

E. Financial performance 9-1 Working ratio (WR) 69% 142% 97% 68% or less (WB)9-2 Operating ratio (OR) 99% 190% 132% 10 Collection rate (CR) 97% 97% 97% 85% or more

(WB) (Source) JICA Study Team

7.2 Administration and Management of 3 PDAMs

7.2.1 Organizations of Each PDAM

(1) PDAM Yokyakarta Piped water supply system in central city area of Yogyakarta was built in the Colonial era, and there was water service operation in 1948, which is now being operated by PDAM Tirtamarta Yogyakarta. It was established under the regulation No. 3 1976 PERATURAN DAERAH KOTAMADYA DAERAH TINGKAT II YOGYAKARTA. The corporation is owned by the autonomous regional government headed by WALIKOTAMADYA, which operation is lead by three directors and controlled by Supervisory board. The supervisory board members consist of Assistant Secretary of the government and representatives of the community and customers. The duties of Supervisory board are: 1) budget and expenditure validation of the company 2) monitoring and evaluation on management of the company 3) the goals and directions of development

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4) monitoring and evaluation on company policy 5) agreement on investment for development

The board of directors is composed by President Director, Technical Director and General Director. The organization chart is shown in the following figure and more detail is attached in the Appendix 7.1 Figure 1 and the job description under Walikota Yogyakarta Decision No.162/KD/1987 is attached in Appendix 7.2.

Kota Government

President Director.

Supervisory Board

General & Finance Director

Technical Director Internal Auditor

Finance

Public Service

General Affair

Planning

Production & Quality Check

Transmission & Distribution

Figure 7.2.1 PDAM Yogyakarta Organization Structure

(2) PDAM Sleman PDAM Sleman started in 1981 as BPAM (Regional Water Bodies managed by the central government), and changed status to PDAM under Sleman Prefecture Regulation No.3, 1991 as a drinking water service company, which is owned by the autonomous regional government headed by BUPATI KEPALA DAERAH TINGKAT II, and which operation is lead by three directors and controlled by Supervisory board. The supervisory board members consist of Assistant Secretary of the government and representatives of the community and customers. The organization chart under Mayor Decree No.364/Kep.KDH/1996 is shown in the following figure

7 - 8

Bupati Kepala DaerahTingkat Il Sleman

President Director

Supervisory Board

General Director

Technical Director

Finance

Human Resources Development

General Affairs

Technical Planning

Production & Quality

Transmission & Distribution

Branch Area

CustomerService Section

Administration & Finance Section

Technical Section

Service Unit

Internal Auditor

Reserch & Development

Figure 7.2.2 PDAM Sleman Organization Structure

(3) PDAM Bantul PDAM Bantul started in 1984 as BPAM, and changed status to PDAM under Prefecture Regulation No. 11 1990 PERATURAN DAERAH KABUPATEN DAERAH TINGKAT II BANTUL, which is owned by the autonomous regional government headed by BUPATI KEPALA DAERAH TINGKAT II, and which operation is lead by three directors and controlled by Supervisory board. The supervisory board members consist of Assistant Secretary of the government and representatives of the community and customers. The organization chart is shown in the following figure

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Bantul Regency

President Director

Chief of Unit 1 to 12

Supervisory Body

Director of General Technical Director

General Affair Public Service Financial Transmission &Distribution

Production & Quality

Technical Plan

Internal Auditor

Figure 7.2.3 PDAM Bantul Organization Structure

7.2.2 Present Managerial and Financial Situation of Each PDAM

(1) PDAM Yogyakarta Financial management is efficient. Tariff level (Full/Base/Low) is calculated according to MOHA Instruction Manual No.8/1998 which is attached in Annex 7.3. Actual tariff calculated as water revenue divided by consumption volume in the year 2005 could almost cover full cost recovery as follows:

Table 7.2.1 Tariff Level Unit Rp/m3

Full Rate; full cost recovery including profit 1,742 Base Rate; operating cost and loan repayment 1,554 Low Rate; operating cost recovery 1,452 Actual tariff 1,734

Source: JICA Study Team based on PDAM Yogyakarta 2005 financial statement As the result, income statement shows stable revenue and profit increase as follows:

Table 7.2.2 Profit and Loss Unit Rp million

2000 2001 2002 2003 2004 2005 Revenue 9,470 10,237 13,711 13,332 15,648 18,500 Direct cost 4,338 5,106 6,341 6,802 7,669 9,003 Direct profit 5,132 5,131 7,379 6,530 7,979 9,497 In-direct cost 3,233 3,611 5,048 4,440 5,651 6,488 Operating income 1,899 1,520 2,322 2,090 2,328 3,009 Source: Audited financial statement

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0

2,500

5,000

7,500

10,000

12,500

15,000

17,500

20,000

2000 2001 2002 2003 2004 2005

Revenue Direct cost In-direct cost Operating income

Figure 7.2.4 Profit and Loss

Revenue and profit are increasing in these 2 years by absorbing direct costs. Total cost is divided to direct costs which consist of purchase cost of well water, treatment cost and distribution cost, and indirect costs including financial cost. In 2005 with comparison of the previous year, purchase cost, treatment cost and distribution cost increased by 19%, 34% and 5% respectively. Profit and Loss Statement is shown in the Appendix 7.1 Table 1, and unit cost is calculated as follows:

Table 7.2.3 PDAM Yogyakarta Unit Cost in 2005 Rp million Rp/m3 Production cost 6,283 589Distribution cost 2,720 255Administration cost 6,488 608Total 15,491 1,452

Source: JICA Study Team

Break even point versus revenue in 2005 is 68 percent which shows fairly good position. Since there is no water source in the administrative boundary, it is essential to get water sources from outside.

In 1984, asset was revaluated to make surplus for Rp.1,223 million which contributed to equity. In 2002, the central government loan originated by Swiss donor was converted to grant capital for Rp.10,770 million and invested project assets owned by the central government was transferred to PDAM for Rp. 2,239 million which listed in equity stating that its status is not yet determined1. Equity amounts for Rp.23,912 in 2005, and equity ratio is 76 percent which shows borrowing capability. (Balance Sheet and Cash flow Statement are shown in the

1 PDAM Yogyakarta Audited financial statement 2004-2005

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Appendix 7.1 Table 2 and Table 3) Account receivable analysis shows that all three PDAMs are fairly good position with collection period for less than 3 months but in case of PDAM Yokgakarta, bad debt over one year counted 17 percent of outstanding account receivables (account receivables comparison is shown in the Appendix 7.1 Table 4 and account receivable flowchart of PDAM Yogyakarta is shown in the Appendix 7.1 Figure 2).

Performance evaluation based on guideline of MOHA (which is shown in Appendix 7.4) in the aspects of finance, operation and administration is as follows:

Table 7.2.4 PDAM Yogyakarta Performance Finance Aspect

Maximum 2001 2002 2003 2004 2005 Profit ratio to productive assets >10% 0.09 0.12 0.1 0.11 0.11

1 Value 5 Improvement 5 4 6 4 6 5

Profit ratio to revenue >20% 0.21 0.21 0.19 0.18 0.172

Value 5 Improvement 5 5 5 4 4 4Current ratio 1.75～2.0 1.48 5.23 6.35 4.7 4.94

3 Value 5 3 1 1 1 1

Ratio of long term debt to equity ≤0.5 0.63 0.07 0.07 0.05 0.054

Value 5 4 5 5 5 5Ratio of total assets to total loan >2 3.45 16.03 17.39 21.45 25.17

5 Value 5 5 5 5 5 5

Ratio of operational cost to operational revenue ≤0.5 0.89 0.86 0.87 0.88 0.86

6 Value 5 2 2 2 2 2

Ratio of operational profit to installment and interest payment >2.0 23.15 20.68 6.76 26.98

7 Value 5 5 5 5 5 5

Ratio of productive assets to water selling ≤2.0 2.8 2.04 2.1 1.85 1.77

8 Value 5 4 4 2 5 5

Term of billing ≤60 37.24 39.34 40.52 43.48 50.629

Value 5 5 5 5 5 5Billing effectiveness >90% ー ー ー ー 0.99

10 Value 5 ― ― ― ― 5

Total Value Maximum 60 42

Calculation Score 45 31.50

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Operational Aspect 2005 Value=Number of Service population/population

47

3 1 Scope of service population

(Municipal) % +improvement This year - last year -5 0

2 Water quality Drinking water/Clean water/Not either Drinking 3 3 Water continuity All customer get 24 hrs or not 24hrs 2

4 Productivity % =Production capacity/Connecting capacity

100

4

=Distribution-selling water in main meter/Distribution

30.98

2 5 Water loss %

+improvement This year - last year 0.34 0

6 Water meter check % =water meter checked customer -new connection/All customer

90

3

7 New connection speed Working days Contract-connection 7 1 8 Customer complaint handling % =Complaint handled/Total complaints 100 2 9

Easily service There is a service point outside office or not

yes

2

10 Employee per 1,000 customers (Municipal) Contract employees included

8.56

3

Total Value Maximum 47 25 Calculation Score40 21.28

Administrative Aspect 2005 Value1 Corporate plan implementation Full, partial or not Partial 3

2 Organization plan and job description implementation

Full, partial or not based on Corporate plan

Partial

3

3 Standard operation procedure Full, partial or not based on Corporate plan

Partial

3

4 As Built Drawing Full, partial or not based on Corporate plan

Partial

3

5 Guideline of employee performance such as career and salary

Full, partial or not based on Corporate plan Partial 3

6 Master plan and company budget Full, partial or not based on Corporate plan

Partial

3

7 Internal report On time or not On time 2 8 External report On time or not On time 2 9 Independent auditor's opinion True without exception-Not true True without

exception

4

10 Action plan of investigation report of Last year None finding-No action plan

Follow-up

3

Total Value Maximum 36 29 Calculation Score 15 12.08

Classification Score Performance >75 Very good >60-75 Good 64.86 >45-60 Enough >30-45 Not enough

≤30 Not good

Source: PDAM Yogyakarta Finance and Technical Division and JICA Study Team

(2) PDAM Sleman PDAM Sleman was established in 1991. Since them, human resources have much administration staff among 186 permanent staff as of 2006, resulting high administration cost (human resources comparison is shown in the Appendix 7.1 Table 4). Management admits

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redundancy and endeavors to activate personnel. In addition, price hike in fuel and electricity is burden for the PDAM. Actual tariff does not cover operating cost as follows:

Table 7.2.5 Tariff Level Unit Rp/m3

Full Rate; full cost recovery including profit 3,756 Base Rate; operating cost and loan repayment 3,144 Low Rate; operating cost recovery 3,038 Actual tariff 1,732

Source: JICA Study Team based on PDAM Sleman financial statement in 2005

Income statement shows as follows

Table 7.2.6 Profit and Loss Unit Rp million

2000 2001 2002 2003 2004 2005 Revenue 2,326 2,747 3,021 5,351 5,794 5,781 Direct cost 2,194 2,681 2,898 3,530 3,941 4,054 Direct profit 132 66 123 1,821 1,853 1,727 In-direct cost 1,680 2,864 3,320 3,962 5,260 5,069 Operating income -1,548 -2,798 -3,197 -2,141 -3,407 -3,342 Source: Audited financial statement

-4,000

-2,000

0

2,000

4,000

6,000

2000 2001 2002 2003 2004 2005

Revenue Direct cost In-direct cost Operating income

Figure 7.2.5 Profit and Loss From the beginning of operation, it has not made a good performance in financial aspect2 resulting red equity in the amount of minus Rp 5 billion after consumption of paid-in capital for Rp 15 billion (equity comparison is shown in the Appendix 7.1 Table 6). The regional government made rescue loan to pay salary since 2004.

2 PDAM Sleman Rescue proposal September 2005

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Unit cost is calculated as follows:

Table 7.2.7 PDAM Sleman Unit Cost in 2005 Rp million Rp/m3 Production cost 2,320 772 Distribution cost 1,734 577 Administration cost 5,069 1,688 Total 9,123 3,038

Source: JICA Study Team

Income Statement, Balance Sheet and Cash flow Statement are shown in Appendix 7.1 Table 7, Table 8 and Table 9, respectively. Performance evaluation based on guideline of MOHA in the aspects of finance, operation and administration is as follows:

Table 7.2.8 PDAM Sleman Performance Finance Aspect

Table PDAM Sleman Performance Maximum 2002 2003 2004 2005 Profit ratio to productive assets >10% -0.17 -0.11 -0.18 -0.20

1 Value 5 Improvement 5 1 3 1 1 Profit ratio to revenue >20% -1.03 -0.37 -0.56 -0.61

2 Value 5 Improvement 5 1 6 1 1 Current ratio 1.75～2.0 0.12 0.15 0.10 0.07

3 Value 5 1 4 1 1 Ratio of long term debt to equity ≤0.5 3.13 6.22 -9.60 -2.36

4 Value 5 1 1 1 1 Ratio of total assets to total loan >2 1.67 1.75 1.63 1.54

5 Value 5 3 4 3 3 Ratio of operational cost to operational revenue ≤0.5 2.06 1.40 1.59 1.58

6 Value 5 1 1 1 1 Ratio of operational profit to installment and interest payment >2.0 -0.39 -0.82 -1.02

7 Value 5 1 1 1 Ratio of productive assets to water selling ≤2.0 6.32 3.79 3.42 3.17

8 Value 5 2 4 4 4 Term of billing ≤60 40 47 41 41

9 Value 5 5 5 5 5 Billing effectiveness >90% 0.83 0.90 0.90 0.98

10 Value 5 3 5 5 5

Total Value Maximum 60 23 Calculation Score 45 17.25

Source JICA Study Team

PDAM Sleman has geographical advantage such as water resources, increasing population, industry development and so on. Reconstruction of financial situation is essential to proceed improved policy and strategy.

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Operational Aspect 2005 Value=Number of Service population/ population

14.60

1 1 Scope of service population (Regency) % +improvement This year - last year 0.74 1

2 Water quality Drinking water/Clean water/Not either Drinking 3 3 Water continuity All customer get 24 hrs or not yes 2 4 Productivity % =Production capacity/Connecting capacity

=Distribution-selling water in main meter/Distribution

46.88

1 5 Water loss %

+improvement This year - last year 5.03

6 Water meter check % =water meter checked customer -new connection/All customer

7 New connection speed Working days Contract-connection 6 2 8 Customer complaint handling % =Complaint handled/Total complaints 86.42 2

9 Easily service There is a service point outside office or not

yes

2 10 Employee per 1,000 customers (Regency) Contract employees included 10.11 4

Total Value Maximum 47 18 Calculation Score 40 15.32

Administrative Aspect 2005 Value1 Corporate plan implementation Full, partial or not Partial 3

2 Organization plan and job description implementation Full, partial or not based on Corporate plan

Partial

3

3 Standard operation procedure Full, partial or not based on Corporate plan

Partial

3

4 As Built Drawing Full, partial or not based on Corporate plan

Partial

3

5 Guideline of employee performance such as career and salary Full, partial or not based on Corporate plan

Partial

3

6 Master plan and company budget Full, partial or not based on Corporate plan

Partial

3 7 Internal report On time or not On time 2

8 External report On time or not Not on time

1

9 Independent auditor’s opinion True without exception-Not true True without

exception

4

10 Action plan of investigation report of Last year None finding-No action plan

Follow up

2

Total Value Maximum 36 27 Calculation Score 15 11.25

Classification Score Performance >75 Very good >60-75 Good >45-60 Enough >30-45 Not enough 43.82 <=30 Not good

Source: PDAM Sleman Finance Division

(3) PDAM Bantul PDAM Bantul started operation with 17 systems in 1992. However it can not clear break even point (break even point comparison is shown in the Appendix 7.1 Table 10). It could not operate as a healthy corporation up to now and caused many complaints of quality and quantity from customers. Actual tariff does not cover operating cost as follows:

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Table 7.2.9 Tariff Level Unit Rp/m3

Full Rate; full cost recovery including profit 2,092 Base Rate; operating cost and loan repayment No repayment Low Rate; operating cost recovery 1,686 Actual tariff 1,326

Source: PDAM Bantul financial statement in 2005

Income statement shows as follows

Table 7.2.10 Profit and Loss Unit Rp million

2001 2002 2003 2004 2005 Revenue 2,093 2,978 3,466 3,843 4,026 Direct cost 1,500 1,624 1,890 2,137 2,404 Direct profit 593 1,354 1,576 1,706 1,622 In-direct cost 958 1,702 2,075 1,883 1,875 Operating income -365 -348 -499 -177 -253

Source: Audited financial statement

-1,000

0

1,000

2,000

3,000

4,000

5,000

2001 2002 2003 2004 2005

Revenue Direct cost In-direct cost Operating income

Figure 7.2.6 Profit and Loss

Graph shows indirect cost is well controlled. Expansion to break even point should be management target.

Revenue is increasing every year. Direct profit cannot increase because of direct costs which consist of water source cost, processing cost and distribution cost. Water source cost increased by 21% in 2005 mainly due to electricity price hike for pumping. Electricity cost in 2002 was Rp 687 billion and in 2005 increased to Rp 1,215 billion, 1.8 times as much. Unit cost is calculated as follows:

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Table 7.2.11 PDAM Bantul Unit Cost in 2005

Rp million Rp/m3 Production cost 1,717 677Distribution cost 687 271Administration cost 1,875 739Total 4,279 1,686

Source: JICA Study Team

Account receivable analysis shows that all three PDAMs are fairly good position with collection period for less than 3 months but in case of PDAM Bantul, bad debt over 2 years counted 20 percent of outstanding account receivables.

Income Statement, Balance Sheet and Cash flow Statement are shown in the Appendix 7.1 Table 11, Table 12 and Table 13, respectively. Performance evaluation based on guideline of MOHA in the aspects of finance, operation and administration is as follows:

Table 7.2.12 PDAM Bantul Performance Finance Aspect Maximum 2001 2002 2003 2004 2005

Profit ratio to productive assets >10% -0.04 -0.04 -0.05 -0.02 -0.021

Value 5 Improvement 5 1 1 1 3 3Profit ratio to revenue >20% -0.17 -0.11 -0.12 -0.04 -0.06

2 Value 5 Improvement 5 1 3 1 4 1Current ratio 1.75～2.0 8.60 3.26 1.64 3.61 6.15

3 Value 5 1 1 4 1 1Ratio of long term debt to equity <=0.5 0 0 0 0 0

4 Value 5 5 5 5 5 5Ratio of total assets to total loan >2 0 0 0 0 0

5 Value 5 5 5 5 5 5Ratio of operational cost to operational revenue <=0.5 1.17 1.12 1.14 1.05 1.06

6 Value 5 1 1 1 1 1Ratio of operational profit to installment and interest payment >2.0

7 Value 5 5 5 5 5 5Ratio of productive assets to water selling <=2.0 3.84 2.70 2.28 2.75 2.54

8 Value 5 4 4 4 4 4Term of billing <=60 33.37 37.35 34.07 37.10 43.99

9 Value 5 5 5 5 5 5Billing effectiveness >90% 0.73 0.97

10 Value 5 5

Total Value Maximum 60 35Calculation Score 45 26.25

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Operational Aspect 2005 Value

=Number of Service population/ population

8.08 1 1 Scope of service population (Regency) %

+improvement This year - last year 2 Water quality Drinking water/Clean water/Not either Clean 2 3 Water continuity All customer get 24 hrs or not Not yet 1

4 Productivity % =Production capacity/Connecting capacity

96.19 4

=Distribution-selling water in main meter/Distribution

40.65

1 5 Water loss %

+improvement This year - last year

6 Water meter check % =water meter checked customer -new connection/All customer

100

1

7 New connection speed Working days Contract-connection 6 2 8 Customer complaint handling % =Complaint handled/Total complaints 100 2

9 Easily service There is a service point outside office or not

Yes

2

10 Employee per 1,000 customers (Regency) Contract employees included 11.47 3

Total Value Maximum 47 19 Calculation Score40 16.17

Administrative Aspect 2005 Value 1 Corporate plan implementation Full, partial or not Partial 3

2 Organization plan and job description implementation

Full, partial or not based on Corporate plan Partial

3

3 Standard operation procedure

Full, partial or not based on Corporate plan Partial

3

4 As Built Drawing

Full, partial or not based on Corporate plan Partial

3

5 Guideline of employee performance such as career and salary Full, partial or not based on Corporate plan

Full

4

6 Master plan and company budget Full, partial or not based on Corporate plan

Partial 3

7 Internal report On time or not On time 2 8 External report On time or not Not on time

1 9 Independent auditor's opinion True without exception-Not true True

without exception

4

10 Action plan of investigation report of Last year None finding-No action plan

Follow up

2

Total Value Maximum 36 28 Calculation Score 15 11.67

Classification Score Performance >75 Very good >60-75 Good >45-60 Enough 54.09 >30-45 Not enough ≤30 Not good

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(4) Comparison of PDAM in Unit cost Table 7.2.13 Unit Cost of PDAM

(Unit Rp/m3) PDAM Yogyakarta Sleman Bantul Production Raw water 38 0 - Operation 217 567 - Maintenance 24 26 - Depreciation 98 56 - Processing Operation 173 85 - Maintenance 5 6 - Depreciation 34 32 - Sub Total 589 772 677

Transmit & Distribution

Operation 146 169 - Maintenance 22 42 - Depreciation 87 367 - Sub Total 255 578 271 Administration Personnel 379 779 - Maintenance 68 98 - Depreciation 68 26 - Others 93 785 - Sub Total 608 1,688 739 Total 1,452 3,038 1,687 Source: Composed by JICA Study Team from PDAM Financial statements Details are not available from PDAM Bantul

It is noted that 1) production and processing cost sub-total of PDAM Sleman include electricity for Rp 301/m3 and fuel for Rp 104/m3 2) administration cost-others of PDAM Sleman includes delayed interest and penalty from the central government for Rp 687/m3

7.2.3 SWOT Analysis of PDAM

Points of strength, weakness, opportunity and threat among others are as follows:

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(1) PDAM Yogyakarta Strength: Weakness: - Financial potentiality - Water loss - Efficiency in service area - Water source - Administration - Scope of service Opportunity: Threat: - Business area - Population decrease tendency

(2) PDAM Sleman Strength: Weakness: - Production capacity - Water loss - Gravity water source - Scattered population - Shallow well - Water meter Opportunity: Threat: - New housing area - Financial Situation - Industrial area - Disconnection - Water resources

(3) PDAM Bantul Strength: Weakness: - Production capacity - Water loss - Piping network - Water quality - Quantity and pressure control system - Water resources cost - Fee collection system - Scattered population Opportunity: Threat: - New housing area - Disaster - Industrial area - Disconnection - Seaport

7.2.4 Policy and Strategy of Each PDAM

Based on SWOT analysis of each PDAM, gap between present condition and vision 2020 should be minimized by consensus on what to do as policy and how to do by strategy.

(1) PDAM Yogyakarta - Funding source As mentioned above, it is capable for borrowing. Depending on investment plan, whether

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water source development and/or rehabilitation for water loss improvement or else, funding sources are needed. It is recommended 5 year corporate plan should be authorized and disclosed for further study. - Creditability strengthening Financial analysis shows healthy level. Performance classification category is good. PERPAMSI PDAM Kota benchmark listed top 10 PDAMs in 15 categories of financial indications. PDAM Yogyakarta appears in 8 categories. There are 8 primary benchmarks in PERPAMSI PDAM Kota including finance, customer, technical and operation. PDAM Yogyakarta appears in 5 categories among top 10 PDAM Kota. PERPAMSI PDAM Kota benchmark is shown in Appendix 7.1 Table 14.

(2) PDAM Sleman - Reconstruction of corporation Central and Sleman regional government should consider comprehensive support to reconstruct PDAM management and operation including debt payment due to the central government for Rp 20 billion (outstanding loan for Rp.11 billion and accrued interest for Rp.9 billion), and due to the regional government and others for Rp 2 billion as of 2005. In order to stop interest accrual and penalty, PDAM applied to Ministry of Finance and is waiting for “Write-Off of State/Regional Government Receivables” according to Law No.33/2004 and Government Regulation No.14/2005, and “Write-Off and Rescheduling of State Receivables and Regional Development Account Loan” according to MOF Regulation No.107/PMK.06/2005.

- Water meter Among 19,500 registered household, broken water meters are 1,825 and not accurate are 9,800. Water meter must be replaced every 4 years, but not executed because customer’s deposits were used to cover company’s deficit3. The regional government is making investment for water meter according to PDAM projection, which is expected to complete by the end of 2006. This investment is being made by the fund of regional government at this stage. It may be recognized as governmental subsidy to the PDAM, and invested assets will be maintained by the PDAM.

- Connection Total domestic connections since 1982 are 22,900 units, revoked or sealed are 5,300 units, monthly bill issued are 17,600 units including minimum usage, whereas registered household 19,500, and therefore 1,900 units are user-without payment. Some customers quit because of 3 PDAM Sleman GAMBARAN April 2006

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water quality without treatment or insufficient supply caused by distribution leakage4. PDAM is now doing door-to-door contact to solve the problem. - Tariff Tariff has been revised recently by BUPATI DECISION No 5/2006 which is shown in Appendix 7.5. Base tariff for residential A1 increase from Rp.1,000/m3 to Rp.1,500/m3. It is expected to improve operational cash flow in 2007 together with meter replacement mentioned above. The tariff is scheduled to increase every 6 month until base tariff reach Rp.2,000/m3. Tariff analysis is discussed with the tariff of PDAM Bantul.

(3) PDAM Bantul - Operational cash flow Water source cost increased due to electricity for pumping to almost 2 times in these 3 years. Revenues are increasing but there is a threat of disconnection because of complaints from customers about quality. In order to increase operational cash flow, scope of service area should be increased.

- Investment Even though financial position is weak, 94% of equity ratio in 2005 shows the room for borrowing. The government support is essential to reach BEP (break even point). In 2003, WTP was installed in SEDAYU at the cost of regional government for Rp.3 billion. Water meters must be maintained properly to reduce NRW.

- Tariff Collection system is one of strength because there is coordination with Bank Rakyat Indonesia and PDAM has service units at every Kecamatan in service. However, tariff has never been revised since 2002. It is recommended to revise periodically to catch up inflation. It is understood that PDAM Bantul is processing tariff revision based on the guideline and procedure stipulated in MOHA Decree which is shown in Appendix 7.6. Tariff must be cleared article 3 of the guideline stipulating as follows:

1) Tariff must be affordable by the consumer, and 2) Affordability is not more than 4% of total income.

Tariff analysis was made comparing with 7 major PDAM tariff as shown in the following table. 7 major PDAMs are Jakarta, Surabaya, Bandung, Medan, Ujung Pandang, Malag and Semarang taken at random and whose tariff is shown in shown Appendix Table 15. 4 PDAM Sleman PREDIKSI May 2006

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Table 7.2.14 Tariff Comparison Consumption 7 PDAMs 2000-2001 Sleman Bantul Yogyakarta

Comparison with Tariff 2002 Comparison with Tariff 2005 Comparison with Indicator Indicator Indicator

Customer Brakets

Average Rp/m3

Indicator (A2=100)

Tariff 2006 Rp/m3 Average

(A2=100) Rp/m3 Average

(A2=100) Rp/m3 Average

(A2=100) 0-10 344 36 1,500 4.4 236 1,000 2.9 184 750 2.2 206 11-20 361 38 1,500 4.2 224 1,000 2.8 174 Social General

above 20 475 50 1,500 3.2 171 1,000 2.1 133 800 1.7 159 0-10 429 45 1,500 3.5 189 1,000 2.3 147 750 1.7 165 11-20 511 54 1,750 3.4 185 1,250 2.4 154 Special Social A

above 20 974 103 2,000 2.1 111 1,500 1.5 97 1,250 1.3 121 Average 3.4 186 2.3 148 1.7 163

0-10 758 80 1,500 2.0 107 1,000 1.3 83 750 1.0 94 11-20 1,101 116 2,000 1.8 98 1,250 1.1 72 Residential A1

above 20 2,124 225 2,250 1.1 57 1,500 0.7 45 1,650 0.8 73 0-10 946 100 1,750 1.9 100 1,500 1.6 100 1,000 1.1 100 11-20 1,391 147 2,250 1.6 87 1,875 1.3 85 Residential A2

above 20 2,669 282 2,500 0.9 51 2,250 0.8 53 1,650 0.6 58 0-10 1,230 130 2,000 1.6 88 1,650 1.3 127 11-20 1,796 190 2,500 1.4 75 Residential A3

above 20 3,061 324 2,750 0.9 49 1,950 0.6 60 Average 1.5 79 1.2 73 0.9 85

0-10 2,509 265 3,900 1.6 84 2,500 1.0 63 2,125 0.8 80 11-20 3,049 322 3,900 1.3 69 2,500 0.8 52 Small Commercial

above 20 4,937 522 4,500 0.9 49 3,000 0.6 38 2,775 0.6 53 0-10 2,696 285 5,000 1.9 100 2,500 0.9 58 3,200 1.2 112 11-20 3,446 364 5,000 1.5 78 2,500 0.7 46 Small Industry

above 20 5,164 546 7,000 1.4 73 3,000 0.6 37 3,200 0.6 59 0-10 3,611 382 4,250 1.2 64 3,000 0.8 52 4,250 1.2 111 11-20 4,329 458 4,250 1.0 53 3,000 0.7 44 Big Commercial

above 20 6,239 659 5,500 0.9 48 3,600 0.6 36 4,250 0.7 64 0-10 4,104 434 5,500 1.3 72 5,000 1.2 77 4,675 1.1 108 11-20 5,106 540 5,500 1.1 58 5,000 1.0 62 Big Industry

above 20 6,936 733 8,000 1.2 62 6,000 0.9 55 4,675 0.7 64 Average 1.3 68 0.8 52 0.9 81

Source : Study team Indicator means price against residential A2 whose minimum bracket is 100 and comparison with indicator means percentage against 7 PDAMs’ indicator of 3 PDAMs’ residential A2 whose minimum bracket is 100.

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Since Yokyakarta bracket is different from others, comparison is not accurate but it relatively shows that progressive rate is low and that tariff for business is also low. PDAM Bantul should take into consideration progressive rate for the purpose of revenue and water save, and non-domestic tariff because they can add value and transfer cost to last beneficiaries.

7.2.5 The Master Plan The master plan will be formulated in the next phase and above policy and strategy will be materialized in the master plan.

7.3 Community Water Supply System

7.3.1 Development Plan and Construction Process

(1) Development Plan PU of district government deals with SPAM development for the area where PDAM does not provide service according to PP 16/2005. Following to MDG targets, DIY policy and strategy aims at service coverage of 80% for urban area and 60% for rural area by 2015. At this stage, community demand initiates application for development to village head after water source finding.

(2) Construction Process Approval of Kabpaten PU by confirming WUO formation at the community and water quality check by Kabpaten Health Department is needed for water supply system construction. After the development of system, it is given to village for their independent operation and maintenance. Water users association is maintained by social work. PDAM may help WUO for O&M training at the request of village head. Community water supply system organization chart is as follows:

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Kabupaten PU

Kecamatan/Desa/Dusun

Kabupaten Health Dept.

President

Operator - Meter Reader - Billing

Members

Secretary Accountant

Water User Organization

Figure 7.3.1 Community Water Supply Organization Chart

7.3.2 Funding

Initial capital investment is made by the Central Government through DAK (special allocation fund of the central government). DAU (general allocation fund from the central government) is also used for capital investment to AMD (Air Minum Desa).5 In case of Bantul Region, investment cost is born by APBN for 80 percent and APBD for 20 percent. There are some cases with 100 percent born by APBN or in other cases, 10% of investment fund was contributed by community or in other community, labor contribution was made. Regulatory role of AMD is under the responsibility of regional PU with its budget and after the construction, O&M is WUO’s responsibility but repairs or replacement of property is often carried out by donor’s fund such as UNICEF.

7.3.3 Present WUO In the study area there are community water supply system servicing clean water with water user organization. At present there are one system in Kota Yogyakarta for urban poor, 40 systems in Sleman region and 63 systems in Bantul region both for rural people.6 Water users are organized at DUSUN level (community in village) normally by 100～200

household. There is a water user organization DESA level in Sleman District with more than

5 see Table 7.1.5 Capital Investment for Water Supply 6 Since there in no monitoring database, information obtained by site visit survey.

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3,000 household like quasi PDAM. They have their own name of organization such as “TIRTA MULYA” or “MITRA TIRTA SEMBADA” Scale of water users association under EPP in Bantul District is relatively small as 24～75 HH

(household) in each 7 systems in 5 DUSUN, which are now controlled by a coordinator and by DESA officials for reconstruction of damage caused by the earthquake. The disaster is affecting water sources. Shallow wells dry up and pumping pipe must go down to the depth of 65m from 10m before the earthquake. It cost Mangnan II for Rp.33 million to install a set with electric pump.

Organization is maintained by volunteer with the concept of GOTONG-ROYONG. Water fee is fixed for around Rp.4,000～Rp.20,000/HH/month in Sleman District. There are

few who have house connection with water meter. House connection cost is born by the beneficiary. In Bantul District, water fee from farmers is fixed for Rp.7,000 ～

Rp.8,000/HH/month and from others it is fixed for Rp.20,000～Rp.30,000/HH/month. In EPP,

water fees are now under suspension except electricity minimum charge for Rp.40,000/system/month.

In Yogyakarta city, there is a system named as “UAB TIRTA KENCANA” for Kampung located along the Code river banks with low income household. Development accomplished by the community is as follows: 1991: UAB Tirta Kencana was founded. The water was delivered to 6 household. 1999: Ministry of Public Work provided water pump, production and distribution pipes which

delivered water to 23 householders. 2001: Under the program of redevelopment and rehabilitation of slums areas by Ministry of

Public Work, coverage area expanded to 55 household. 2006: CIDA and AIT assisted to increase the coverage to 115 household together with Gadjah

Mada University’s water purification technology.

Each house has water meter with rental cost Rp.1,500/month. Water fee is Rp. 9,000/HH/month up to 15m3, additional Rp.700/m3 to 30m3 and Rp.1,000/m3 for over 30m3. Electricity cost of motor for tanks in the amount of one million rupiah per month is a burden for them.

7.3.4 O&M Situation O&M is carried out by WUO. Labor service is being normally done at volunteer base except

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pump operator and tap keeper. Tariff is decided to share recurrent O&M cost such as electricity consumption charges, over head tank cleaning charges and labor salary etc. Capital cost can not cover by the tariff. Door to door tariff collection is made by tap keeper. It is observed there are problems in electricity price hike and pump motor replacement cost to improve sustainability. Research conducted by Bantul Kabpaten Health Department found 80% of well water of community water supply system was not proper to consume especially in the southern region of Bantul city.7

7.3.5 Governmental Administration

No data base is available in both PU at Sleman and Bantul even though PU of district government is obliged to deal with SPAM development. It is useful for WUO to make annual report to the regional government to exchange information and necessary assistance for sustainable operation and maintenance of the system including donor’s support.

7.3.6 Recommendation

DIY Province Government issued Governor Decision No.2/TIM/2007 regarding establishment of the Team for formulation of Regional Policy and Strategy for SPAM on the day of January 5, 2007. The DIY Government and the three District Governments are about to prepare the regional policy and strategy for SPAM. It is recommended that regional government put priority on funding for SPAM in rural area development, database construction for monitoring sustainability and invite donor’s assistance.

7 PDAM Bantul Corporate Plan 2001-2005